Saturday, August 9, 2008

Much ado about Ghana Telecom sale

I like Ghana when it comes to nationalism. I am yet to see any other African as patriotic as the Ghanaian. He loves his country and is passionate about it. You only need to take a casual drive across Accra to find this out. The Ghanaian flag is a treasure that the average citizen doesn't joke with. He hangs it on his car. Makes clothes, and all kinds of wears with it and is always proud to defend it anywhere, anytime.
Most other Africans who visit Ghana attest to the people's love for their country and by extension Africa in addition to their unique sense of hospitality. I am told that this spirit draws from the days of the freedom struggle. Dr Kwame Nkrumah is one of a foremost pan-Africanist and he wasn't apologetic about it. He sounded it a couple of times in his speeches that 'the African is capable of governing himself'. He believed in Africa and made the average Ghanaian to think likewise.
The continent might not have joined the league of developed nations, but it's surely on its way. Ghana is a typical example of an African country on the path to greatness. Significant progress has been made in the last decade at consolidating democracy, political stability and economic progress. I am one of those who believe that come December 2008, Ghana will score yet another point on its success journey - a peaceful presidential election and smooth transition to another democratically elected president.
All said, I am however put off by the opposition that has greeted the sale of Ghana Telecom.
Government ownership of commercial enterprises all over the world is increasingly becoming old-fashioned. What is the use keeping in the hand of government an enterprise that only incures debts. Given the competitive telecom market it operates, I think the decision to sale GT makes sense. The real issue should be transparency in the deal. With a debt of over $400 million, it is obvious GT is not healthy.
I believe what is best for it now is to have it taken over by a competent private operator who will bring in the needed technology and expertise to turn things around. Vodafone's $900 million might not be a fair deal for some, but to continue 'business as usual' is certainly not a wise choice. As parliament considers the issue next week, I sincerely hope that reasonableness will prevail and not politics and undue sentiments. GT certainly needs an overhaul and privatisation is one way to facilitate that overhaul.

6 comments:

alfie said...

I disagree with your patriotism line. It is more of HYPOCRICY and these are my reasons.

1. After liberalizing, the telecoms market, GT was forced by the regulator to actively support its competitors (Spacefone and Mobitel) to grow their business.

2. GT was deliberately refused a mobile license by the regulator (Ghanaians)for almost 5years even though they knew the implications.

3. To further kill GT's business for whatever parochial interests, the NCA (Ghanaians) also granted the other operators licenses to own their international gateways. (Check the telecoms, industry. THIS IS NOT DONE!)

4. The NCA, a regulator in Ghana, systematically and continuously regulates GT's prices whilst other competitors are allowed to price solely on economic terms.

5. How many Ghanaians use Onetouch's network or own a landline? (Less than 2million(fixed+Onetouch), MTN has over 5million subs, TIGO over 3million).

I arrest my case for now.

Unknown said...

Alfie

I really can't get your line of argument. Are you opposing the sale or for it. I think that from all the reasons you gave, it makes sense like this author said, to sell GT.

concerned ghanaian said...

The whole idea of the sale of Ghana Telecom is a deliberate attempt by Kufuor and his cohorts to milk ghana further. The truth will come out in future. That I know

alfie said...

My earlier post disagreed with the fact that Ghanaians are patriotic. With respect to the sale, i am 200% for the sale cos is it doesn't happen GT will collapse. All the critical staff will be poached by Zain and Glo and the company will die a natural death.

My Beloved Ghana said...

I am really skeptical to take the patriotism lebel that people like this blogger put on us.
I wonder how patriotic we are when we take to cheap lies just to score political points. the opposition against the sale of GT is borne more out of politics than the truth.
Kufuor should proceed with the sale. We are behind him on this

Emmanuel.K.Bensah II said...

Hi Evelyn! Nice blog...

It is a great shame that the patriotic Ghanaian you talk about is the same one that has a great segment claiming that those opposed to the GT deal are OPPONENTS of the government!!! What type of crass reasoning is that? Do you have to be a non-supporter of a government before you say no to its policies?s